IBM Layoffs 2025: Company Shifts to AI-Powered Cloud Solutions

Tech giant IBM has announced plans to reduce its staff worldwide during the final quarter of 2025, as the firm pivots toward AI-enhanced cloud offerings.

Under CEO Arvind Krishna, IBM has been strengthening its software operations, with a particular emphasis on expanding and streamlining its cloud services, including the Red Hat unit. The move comes amid growing adoption of artificial intelligence across various industries.

In an official statement, IBM noted that the upcoming adjustments would impact a “low single-digit percentage” of employees globally.

The announcement follows a recent report highlighting slower growth in IBM’s core cloud software segment, raising concerns among shareholders who had been optimistic about the company’s ability to leverage the surging demand for cloud technologies.

Following the news, IBM’s stock experienced a dip, falling nearly 2% on Tuesday, after having surged more than 35% earlier in 2025.

At the close of 2024, IBM’s workforce stood at around 270,000. While some positions in the U.S. may be affected, the company expects overall staffing levels in the country to remain largely unchanged compared with the previous year.